Total Energy Services Inc. Announces Q1 2026 Results

CALGARY, Alberta, May 12, 2026 (GLOBE NEWSWIRE) -- Total Energy Services Inc. (“Total Energy” or the “Company”) (TSX:TOT) announces its consolidated financial results for the three months ended March 31, 2026. Financial Highlights ($000’s except per share data, unaudited)     Three months ended March 31       2026     2025   Change Revenue   $ 314,896   $ 251,909   25 % Operating income     27,129     26,063   4 % EBITDA(1)     55,158     50,488   9 % Cashflow     54,290     44,934   21 % Net income     24,222     18,952   28 % Attributable to shareholders     24,137     18,966   27 %                   Per Share Data (Diluted)                 EBITDA(1)   $ 1.49   $ 1.31   14 % Cashflow   $ 1.46   $ 1.16   26 %                   Attributable to shareholders:                 Net income   $ 0.65   $ 0.49   33 %                   Common shares (000’s)(4)                 Basic     36,459     38,041   (4 %) Diluted     37,118     38,685   (4 %)                       March 31 December 31   Financial Position at     2026     2025   Change Total Assets   $ 1,069,786   $ 1,000,102   7 % Long-Term Debt and Lease Liabilities (excluding current portion)     64,507     75,236   (14 %) Working Capital(2)     113,404     108,023   5 % Net Debt(1)     -     -   -   Shareholders’ Equity     623,554     601,311   4 %                   Notes 1 through 4 please refer to the Notes to the Financial Highlights set forth at the end of this release. Total Energy’s results for the three months ended March 31, 2026 reflect continued strong North American demand for natural gas compression and process equipment and the deployment of upgraded drilling and service rigs in Australia and Canada that more than offset a year over year decline in North American drilling and completion activity. Negatively impacting first quarter financial results was a $6.5 million year over year increase in share-based compensation expense due to the 52% increase in the Company’s share price during the first quarter of 2026. This was partially offset by a $2.9 million year over year increase on the gain on sale of property, plant and equipment following the sale of certain well servicing equipment in the United States in February 2026. Contract Drilling Services (“CDS”)     Three months ended March 31       2026     2025   Change Revenue   $ 97,178   $ 91,087   7 % EBITDA(1)   $ 24,020   $ 25,228   (5 %) EBITDA(1) as a % of revenue     25 %   28 % (11 %) Operating days(2)     2,615     2,723   (4 %) Canada     1,545     1,889   (18 %) United States     115     144   (20 %) Australia     955     690   38 % Revenue per operating day(2), dollars   $ 37,162   $ 33,451   11 % Canada     28,386     27,245   4 % United States     26,913     30,507   (12 %) Australia     52,594     50,659   4 % Utilization     31 %   29 % 7 % Canada     27 %   28 % (4 %) United States     11 %   13 % (15 %) Australia     62 %   45 % 38 % Rigs, average for period     93     103   (10 %) Canada     64     74   (14 %) United States     12     12   -   Australia     17     17   -   (1) See Note 1 of the Notes to the Financial Highlights set forth at the end of this release. (2) Operating days includes drilling and paid standby days. First quarter CDS segment activity in 2026 was modestly lower than the first quarter of 2025. Reactivation of upgraded equipment at higher day rates in Australia and higher day rates received for upgraded Canadian equipment contributed to increased first quarter segment revenue. However, a year over year decline in North American first quarter drilling activity more than offset a significant increase in Australian rig utilization and resulted in lower first quarter segment EBITDA relative to 2025. Rentals and Transportation Services (“RTS”)     Three months ended March 31       2026     2025   Change Revenue   $ 19,467   $ 23,024   (15 %) EBITDA(1)   $ 6,494   $ 8,426   (23 %) EBITDA(1) as a % of revenue     33 %   37 % (11 %) Revenue per utilized piece of equipment, dollars   $ 14,165   $ 15,503   (9 %) Pieces of rental equipment     8,023     7,813   3 % Canada     6,839     6,879   (1 %) United States     1,184     934   27 % Rental equipment utilization     17 %   19 % (11 %) Canada     14 %   16 % (13 %) United States     37 %   41 % (10 %) Heavy trucks     57     68   (16 %) Canada     37     47   (21 %) United States     20     21   (5 %) (1)See Note 1 of the Notes to the Financial Highlights set forth at the end of this release. RTS segment revenue decreased in the first quarter of 2026 compared to 2025 due to lower North American drilling and completion activity and decreased revenue per utilized piece resulting from a change in the mix of equipment operating. The acquisition of 280 major rental pieces located in Oklahoma on June 10, 2025 mitigated the year over year decline in industry activity levels in the United States. First quarter segment EBITDA decreased compared to 2025 given this segment’s relatively high fixed cost structure and competitive market conditions that did not allow for price increases necessary to offset cost inflation. Compression and Process Services (“CPS”)     Three months ended March 31       2026     2025   Change Revenue   $ 164,639   $ 106,216   55 % EBITDA(1)   $ 21,807   $ 15,740   39 % EBITDA(1)as a % of revenue     13 %   15 % (13 %) Horsepower of equipment on rent at period end     31,970     43,558   (27 %) Canada     17,320     14,468   20 % United States     14,650     29,090   (50 %) Rental equipment utilization during the period (HP)(2)     70 %   67 % 4 % Canada     69 %   62 % 11 % United States     71 %   74 % (4 %) Sales backlog at period end, $ million   $ 446.9   $ 265.4   68 % (1) See Note 1 of the Notes to the Financial Highlights set forth at the end of this release. (2) Rental equipment utilization is measured on a horsepower basis. 2026 first quarter CPS segment revenue was higher compared to 2025 due to increased North American fabrication sales and parts and service activity that was partially offset by lower compression rental fleet revenue in the United States following the sale of several active compression rental units in 2025. The year over year increase in first quarter segment EBITDA was due to increased fabrication and parts and service activity and improved fabrication margins although the decline in higher margin rental revenues resulted in a lower segment EBITDA margin compared to 2025. The quarter end fabrication sales backlog increased to $446.9 million compared to the $265.4 million backlog at March 31, 2025. Sequentially the quarter-end fabrication sales backlog increased by $0.2 million compared to the $446.7 million backlog at December 31, 2025. Well Servicing (“WS”)     Three months ended March 31       2026     2025   Change Revenue   $ 33,612   $ 31,582   6 % EBITDA(1)   $ 11,135   $ 5,306   110 % EBITDA(1) as a % of revenue     33 %   17 % 94 % Service hours(2)     30,342     29,068   4 % Canada     16,281     15,056   8 % United States     108     2,229   (95 %) Australia     13,953     11,783   18 % Revenue per service hour(2), dollars   $ 1,108   $ 1,086   2 % Canada     947     964   (2 %) United States     898     919   (2 %) Australia     1,297     1,275   2 % Utilization(3)     40 %   31 % 29 % Canada     37 %   30 % 23 % United States     3 %   21 % (86 %) Australia     54 %   45 % 20 % Rigs, average for period     61     79   (23 %) Canada     49     55   (11 %) United States     -     12   (100 %) Australia     12     12   -   (1) See Note 1 of the Notes to the Financial Highlights set forth at the end of this release. (2) Service hours is defined as well servicing hours of service provided to customers and includes paid rig move and standby. (3) The Company reports its service rig utilization for its operational service rigs in North America based on service hours of 3,650 per rig per year to reflect standard 10 hour operations per day. Utilization for the Company’s service rigs in Australia is calculated based on service hours of 8,760 per rig per year to reflect standard 24 hour operations. First quarter Well Servicing segment revenue increased in 2026 as compared to 2025 due to increased activity in Australia and Canada following the upgrade and reactivation of several service rigs over the past year. Increased revenue from Australian and Canadian operations was partially offset by lower WS segment revenue in the United States following the discontinuance of U.S. operations in January 2026. Segment EBITDA for the first quarter of 2026 was higher compared to 2025 due to the deployment of upgraded rigs in Australia and Canada and the cessation of operating losses in the United States. Corporate During the first quarter of 2026, Total Energy began to execute on its $87.4 million 2026 capital expenditure program with $20.7 million of capital expenditures that were primarily directed towards the upgrade of drilling and service rigs in Australia and Canada and the expansion of CPS segment fabrication capacity in the United States. Included in 2026 first quarter capital expenditures was approximately $8.5 million of the $24.5 million of capital commitments carried forward from 2025. Total Energy exited the first quarter of 2026 with $113.4 million of positive working capital, including $91.4 million of cash. At March 31, 2026 there was $130.0 million of available credit under the Company’s $175.0 million of revolving bank credit facilities and the interest rate on the Company’s outstanding bank debt was 4.07%. $6.5 million was returned to shareholders during the first quarter of 2026 by way of dividends and share repurchases. Bank debt was also reduced by $10.0 million during the quarter. Cash on hand exceeded bank debt by $46.4 million at March 31, 2026. Outlook Global economic and political uncertainty, commodity price volatility and producer capital discipline continued to weigh on North American drilling and completion activity during the first quarter of 2026. Offsetting this uncertainty were stable Australian industry conditions and continued strong North American demand for compression and process equipment. The CPS segment’s record $446.9 million fabrication sales backlog at March 31, 2026 provides visibility for the CPS segment’s fabrication business well into 2027 and current quoting activity remains strong. In January 2026 the Company ceased well servicing operations in the United States and substantially all of the operating equipment was sold in February. An agreement to sell the associated real estate has been entered into, with closing expected to occur by June 30, 2026. The escalation of hostilities in the Middle East in February 2026 resulted in a substantial increase in global oil and LNG prices following supply disruptions. While capital discipline arising from a commitment to improving shareholder returns continued to restrain North American drilling and completion activity during the first quarter of 2026, should higher commodity prices persist, they are expected to provide a tailwind for increased North American industry activity. Relatively high natural gas prices in Australia continue to support stable industry conditions. In early May, an upgraded service rig was reactivated in Australia, bringing the Company’s current Australian active rig count to 13 drilling rigs and eight service rigs. An active Australian drilling rig will be taken out of service during the third quarter for approximately two months to complete certain upgrades, following which it will commence operations under a new long term contract. A new Australian service rig is currently under construction and is scheduled to commence operations in the first quarter of 2027. In Canada, the upgrade of a second idle mechanical double drilling rig into a state of the art AC electric triple pad rig is underway and is expected to be completed by the first quarter of 2027. Demand for this style of drilling rig remains very strong and, similar to the first upgrade completed in November 2025, the Company will look to contract this rig closer to the completion date. Total Energy continues to evaluate several acquisition and equipment upgrade opportunities in North America and Australia and will pursue those which meet its investment criteria. Conference Call At 9:00 a.m. (Mountain Time) on May 13, 2026 Total Energy will conduct a conference call and webcast to discuss its first quarter financial results. Daniel Halyk, President & Chief Executive Officer, will host the conference call. A live webcast of the conference call will be accessible on Total Energy’s website at www.totalenergy.ca by selecting “Webcasts”. Persons wishing to participate in the conference call may do so by calling (800) 715-9871 or (647) 932-3411. Those who are unable to listen to the call live may listen to a recording of it on Total Energy’s website. A recording of the conference call will also be available until June 12, 2026 by dialing (800) 770-2030 (passcode 1002576). Selected Financial Information Selected financial information relating to the three months ended March 31, 2026 and 2025 is included in this news release. This information should be read in conjunction with the condensed interim consolidated financial statements of Total Energy and the notes thereto as well as management’s discussion and analysis to be issued in due course and the Company’s 2025 Annual Report. Consolidated Statements of Financial Position (in thousands of Canadian dollars)     March 31 December 31     2026 2025       (unaudited)   (audited) Assets           Current assets:           Cash and cash equivalents   $ 91,373   $ 59,637   Accounts receivable     178,473     165,991   Inventory     143,207     127,022   Prepaid expenses and deposits     22,555     18,268         435,608     370,918               Property, plant and equipment     630,125     625,131   Goodwill     4,053     4,053       $ 1,069,786   $ 1,000,102               Liabilities & Shareholders' Equity           Current liabilities:           Accounts payable and accrued liabilities   $ 188,048   $ 152,214   Deferred revenue     107,736     89,826   Contingent consideration on business acquisition     2,744     2,796   Income taxes payable     12,590     7,518   Dividends payable     4,405     3,635   Current portion of lease liabilities     6,681     6,906         322,204     262,895               Long-term debt     45,000     55,000               Lease liabilities     19,507     20,236               Deferred income tax liability     59,521     60,660               Shareholders' equity:           Share capital     231,558     228,041   Contributed surplus     3,749     5,841   Accumulated other comprehensive loss     (8,448 )   (16,523 ) Non-controlling interest     462     377   Retained earnings     396,233     383,575         623,554     601,311                   $ 1,069,786   $ 1,000,102   Consolidated Statements of Income (in thousands of Canadian dollars except per share amounts) (unaudited)     Three months ended March 31       2026     2025               Revenue   $ 314,896   $ 251,909               Cost of services     244,855     189,128   Selling, general and administration     13,434     13,968   Other income     (834 )   (308 ) Share-based compensation     6,614     108   Depreciation     23,698     22,950   Operating income     27,129     26,063               Gain on sale of property, plant and equipment     4,331     1,475   Finance costs, net     (786 )   (1,468 ) Net income before income taxes     30,674     26,070               Current income tax expense     8,001     4,614   Deferred income tax expense (recovery)     (1,549 )   2,504   Total income tax expense     6,452     7,118               Net income   $ 24,222   $ 18,952               Net income (loss) attributable to:           Shareholders of the Company   $ 24,137   $ 18,966   Non-controlling interest     85     (14 )             Income per share           Basic   $ 0.66   $ 0.50   Diluted   $ 0.65   $ 0.49   Consolidated Statements of Comprehensive Income (in thousands of Canadian dollars except per share amounts) (unaudited)     Three months ended March 31       2026     2025                 Net income   $ 24,222   $ 18,952                 Foreign currency translation     8,075     1,786                 Total other comprehensive income for the period     8,075     1,786                 Total comprehensive income   $ 32,297   $ 20,738                 Total comprehensive income (loss) attributable to:                           Shareholders of the Company   $ 32,212   $ 20,752   Non-controlling interest     85     (14 ) Consolidated Statements of Cash Flows (in thousands of Canadian dollars) (unaudited)     Three months ended March 31       2026     2025               Cash provided by (used in):                       Operations:           Net income for the period   $ 24,222   $ 18,952   Add (deduct) items not affecting cash:           Depreciation     23,698     22,950   Share-based compensation     6,614     108   Gain on sale of property, plant and equipment     (4,331 )   (1,475 ) Finance costs, net     786     1,468   Foreign currency translation     219     1,353   Current income tax expense     8,001     4,614   Deferred income tax expense (recovery)     (1,549 )   2,504   Income taxes paid     (3,370 )   (5,540 ) Cashflow     54,290     44,934   Changes in non-cash working capital items:           Accounts receivable     (12,483 )   (15,228 ) Inventory     (16,185 )   (6,177 ) Prepaid expenses and deposits     (4,287 )   (1,614 ) Accounts payable and accrued liabilities     23,406     22,168   Deferred revenue     17,910     13,467   Cash provided by operating activities     62,651     57,550   Investing:           Purchase of property, plant and equipment     (20,744 )   (34,457 ) Proceeds on disposal of property, plant and equipment     5,713     2,492   Changes in non-cash working capital items     3,231     10,314   Cash used in investing activities     (11,800 )   (21,651 ) Financing:           Repayment of long-term debt     (10,000 )   (528 ) Repayment of lease liabilities     (1,857 )   (1,902 ) Dividends to shareholders     (3,635 )   (3,429 ) Repurchase of common shares     (2,883 )   (2,019 ) Shares issued on exercise of stock options     87     -   Interest paid     (827 )   (1,359 ) Cash used in financing activities     (19,115 )   (9,237 )             Change in cash and cash equivalents     31,736     26,662               Cash and cash equivalents, beginning of period     59,637     38,419               Cash and cash equivalents, end of period   $ 91,373   $ 65,081   Segmented Information The Company provides a variety of products and services to the energy and other resource industries through five reporting segments, which operate substantially in three geographic regions. These reporting segments are Contract Drilling Services, which includes the contracting of drilling equipment and the provision of labor required to operate the equipment, Rentals and Transportation Services, which includes the rental and transportation of equipment used in energy and other industrial operations, Compression and Process Services, which includes the fabrication, sale, rental and servicing of gas compression and process equipment and Well Servicing, which includes the contracting of service rigs and the provision of labor required to operate the equipment. Corporate includes activities related to the Company’s corporate and public issuer affairs. As at and for the three months ended March 31, 2026 (unaudited, in thousands of Canadian dollars) As at and for the three months ended   Contract Rentals and Compression Well Corporate Total March 31, 2026   Drilling Transportation and Process Servicing (1)         Services Services Services                                         Revenue   $ 97,178   $ 19,467   $ 164,639   $ 33,612   $ -   $ 314,896                                 Cost of services     70,617     11,255     138,228     24,755     -     244,855   Selling, general and administration     2,680     1,851     4,618     1,767     2,518     13,434   Other income     -     -     -     -     (834 )   (834 ) Share-based compensation     -     -     -     -     6,614     6,614   Depreciation     12,861     5,299     2,827     2,553     158     23,698   Operating income (loss)     11,020     1,062     18,966     4,537     (8,456 )   27,129                                 Gain on sale of property, plant and equipment     139     133     14     4,045     -     4,331   Finance costs, net     31     (48 )   (104 )   (9 )   (656 )   (786 )                               Net income (loss) before income taxes     11,190     1,147     18,876     8,573     (9,112 )   30,674                                 Goodwill     -     2,514     1,539     -     -     4,053   Total assets     448,109     159,243     334,353     121,736     6,345     1,069,786   Total liabilities     63,747     37,119     208,667     6,148     130,551     446,232   Capital expenditures     9,421     2,109     4,531     4,335     348     20,744       Canada United States Australia International Total                                   Revenue   $ 146,305   $ 100,173   $ 68,418   $ -   $ 314,896   Non-current assets(2)     364,540     110,577     159,061     -     634,178   As at and for the three months ended March 31, 2025 (unaudited, in thousands of Canadian dollars) As at and for the three months ended   Contract Rentals and Compression Well Corporate Total March 31, 2025   Drilling Transportation and Process Servicing (1)         Services Services Services                                         Revenue   $ 91,087   $ 23,024   $ 106,216   $ 31,582   $ -   $ 251,909                                 Cost of services     63,943     12,340     87,185     25,660     -     189,128   Selling, general and administration     2,661     2,281     3,595     1,019     4,412     13,968   Other income     -     -     -     -     (308 )   (308 ) Share-based compensation     -     -     -     -     108     108   Depreciation     12,349     5,060     2,935     2,334     272     22,950   Operating income (loss)     12,134     3,343     12,501     2,569     (4,484 )   26,063                                 Gain on sale of property, plant and equipment     745     23     304     403     -     1,475   Finance costs, net     7     (41 )   (91 )   (15 )   (1,328 )   (1,468 )                               Net income (loss) before income taxes     12,886     3,325     12,714     2,957     (5,812 )   26,070                                 Goodwill     -     2,514     1,539     -     -     4,053   Total assets     449,682     167,067     291,774     85,352     5,696     999,571   Total liabilities     94,518     33,251     134,643     9,183     141,720     413,315   Capital expenditures     23,625     1,181     935     8,687     29     34,457       Canada United States Australia International Total                                   Revenue   $ 119,347   $ 78,815   $ 50,074   $ 3,673   $ 251,909   Non-current assets(2)     373,223     133,742     132,259     -     639,224   (1)Corporate includes the Company’s corporate activities and obligations pursuant to long-term credit facilities. (2)Includes property, plant and equipment, lease asset (excluding current portion) and goodwill. Total Energy provides contract drilling services, equipment rentals and transportation services, well servicing and compression and process equipment and service to the energy and other resource industries from operation centres in North America and Australia. The common shares of Total Energy are listed and trade on the TSX under the symbol TOT. For further information, please contact Daniel Halyk, President & Chief Executive Officer at (403) 216-3921 or Yuliya Gorbach, Vice-President Finance and Chief Financial Officer at (403) 216-3920 or by e-mail at: [email protected] or visit our website at www.totalenergy.ca. Notes to the Financial Highlights   (1) EBITDA means earnings before interest, taxes, depreciation and amortization and is equal to net income (loss) before income taxes plus finance costs plus depreciation. EBITDA is not a recognized measure under IFRS. Management believes that in addition to net income (loss), EBITDA is a useful supplemental measure as it provides an indication of the results generated by the Company’s primary business activities prior to consideration of how those activities are financed, amortized or how the results are taxed in various jurisdictions as well as the cash generated by the Company’s primary business activities without consideration of the timing of the monetization of non-cash working capital items. Readers should be cautioned, however, that EBITDA should not be construed as an alternative to net income determined in accordance with IFRS as an indicator of Total Energy’s performance. Total Energy’s method of calculating EBITDA may differ from other organizations and, accordingly, EBITDA may not be comparable to measures used by other organizations.         (2) Working capital equals current assets minus current liabilities.         (3) Net Debt equals long-term debt plus lease liabilities plus current liabilities minus current assets. Management believes this measure provides a useful indication of the Company’s liquidity.         (4) Basic and diluted shares outstanding reflect the weighted average number of common shares outstanding for the periods. See note 5 to the Company’s Q1 2026 Condensed Interim Consolidated Financial Statements. Certain statements contained in this press release, including statements which may contain words such as "could", "should", "expect", "believe", "will" and similar expressions and statements relating to matters that are not historical facts are forward-looking statements. Forward-looking statements are based upon the opinions and expectations of management of Total Energy as at the effective date of such statements and, in some cases, information supplied by third parties. Although Total Energy believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions and that information received from third parties is reliable, it can give no assurance that those expectations will prove to have been correct. In particular, this press release contains forward-looking statements concerning industry activity levels, including expectations regarding Total Energy’s future activity levels, market share and compression and process production activity. Such forward-looking statements are based on a number of assumptions and factors including fluctuations in the market for oil and natural gas and related products and services, political and economic conditions, central bank interest rate policy, the demand for products and services provided by Total Energy, Total Energy’s ability to attract and retain key personnel and other factors. Such forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of Total Energy to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Reference should be made to Total Energy’s most recently filed Annual Information Form and other public disclosures (available at http://www.sedarplus.ca/) for a discussion of such risks and uncertainties. The TSX has neither approved nor disapproved of the information contained herein.